Penalties for Export Violations

Generally, any person or entity that brokers, exports, or attempts to export a controlled item without prior authorization, or in violation of the terms of a license, are subject to penalties. Violators may incur both criminal and civil penalties.

ITAR Violations

The Arms Export Controls Act (“AECA”) and the ITAR provide that willful violations of the defense controls can be fined up to $1,000,000 per violation, or ten years of imprisonment, or both. In addition, the Secretary of State may assess civil penalties, which may not exceed $500,000 per violation. The civil penalties may be imposed either in addition to, or in lieu of, any other liability or penalty.

EAR and Anti-Boycott Violations

Like the ITAR, violations of the EAR are subject to both criminal and administrative penalties. Fines for export violations, including anti-boycott violations, can reach up to $1,000,000 per violation in criminal cases, and $250,000 per violation in most administrative cases. In addition, criminal violators may be sentenced to prison time up to twenty (20) years, and administrative penalties may include the denial of export privileges.

OFAC Violations

Although potential penalties for violations of U.S. export laws vary depending on the country and material involved, an exporter may be subject to a maximum civil penalty of $250,000 per violation under OFAC regulations.

Detecting and Reporting Violations

All OHIO employees and students have the responsibility to report possible violations of United States export control laws or regulations. To report a potential violation, you can contact the Division of Research and Creative Activity or report concerns about compliance through OHIO’s compliance hotline, EthicsPoint®. The OHIO compliance hotline is available for the reporting of possible fraud, waste, abuse of University assets, or other compliance or regulatory issues, including export control. This hotline is made available through OHIO’s Office of Audit, Risk, and Compliance and may be access through the EthicsPoint® or by calling EthicsPoint® toll-free at 1-866-294-9591. Reports may be submitted anonymously.

Possible violations of United States export control laws or regulations will be investigated by an Empowered Official, or designee, to the extent deemed necessary. The Empowered Official or designee will collaborate with appropriate parties to determine reporting requirements and corrective actions needed for noncompliance with export control laws and regulations.

Disciplinary Actions

There are severe institutional and individual sanctions for violations of export controls laws, including the loss of research funding, loss of export privileges, and civil and criminal penalties, including imprisonment. Additionally, employees and students may be subject to disciplinary action, up to and including termination.